Alaska has no state sales tax, but many local jurisdictions impose local sales tax on clothing and other items.
Some states may have a certain cost threshold that consumers must reach before being charged sales tax.
In the US, sales tax is charged at the point of sale when selling tangible personal property. Most everyday things like toothbrushes or coffee tables are taxable items.
But some states exempt necessities, like groceries and medicines, from sales and use tax. A handful of states take that a step further and exempt clothing from sales tax.
We’ve created a list of states with sales tax exemptions around clothing, along with a list of states that require businesses to charge it.
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However, the states that don’t generally have a tax on clothing and footwear make exceptions.
Sales Tax On Clothing Tip
For example, many of the above states that don’t tax clothing still consider accessories, fur or formalwear, athletic and recreational gear, and protective equipment to be taxable.
Other states’ tax laws set a dollar threshold for taxability. For example, in New York state, clothing is exempt from state sales tax (and sometimes local tax) if it sells for less than $110 per item or pair.
Also, some states where clothing is generally taxable may make exceptions for clothing bought or sold by nonprofits or provided to the needy.
Further, some states also make exceptions regarding “who” wears the clothes. For example, dog clothing (and clothing worn by other pets) is generally considered taxable, even in states where clothes worn by humans are non-taxable.
Be sure to read what each state says about clothing taxability before setting up your sales tax collection engine to collect (or not) sales tax on clothing.
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Clothing is subject to sales tax in most states. Even states that have some sales tax exemptions when it comes to taxing clothing, often only include clothing sold below a certain dollar amount in their tax exemption. And they often exclude categories of clothing such as clothing accessories, fur, formalwear, athletic gear, protective clothing or clothing intended for non-humans.
This chart details clothing taxability by state:
State
Is Clothing Taxable?
More Information
Alabama
Yes
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Alaska
No statewide sales tax
Some local Alaska areas have sales tax, and they can choose whether or not to tax clothing
Even if clothing is generally taxable in a state, that state may hold sales tax holidays where clothing is tax-exempt. Holidays that exempt clothing generally take place around “back to school” time in the autumn.
Every state has different rules when it comes to sales tax on clothing. It will all come down to where you have physical and economic nexus. If someone buys your product or goods in a state that requires sales tax on clothing, you must collect and remit it to that state’s Department of Revenue.
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Below are frequently asked questions about sales tax on clothing.
Do online sellers need to collect clothing tax?
Yes, online sellers on any platform, like Amazon or Etsy, are required to collect and remit sales tax on clothing if they have met physical or economic nexus in a state.
Do you get taxed when buying clothes?
You may be charged sales tax when buying clothes, depending on where you live. Certain states like Alaska, Delaware, Montana, New Hampshire, and Oregon do not have a statewide sales tax.
About the author
The Zamp Team
The Zamp Team consists of experienced writers and editors who are dedicated to researching sales tax topics to help readers make smart decisions about their business and sales tax compliance. Collectively, the team has over 200 years of sales tax experience.
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